14th Round of Commercial Coal Mine Auctions — Key Highlights

The Ministry of Coal launched the 14th Round of Commercial Coal Mine Auctions, marking a major step toward India’s energy self-reliance, sustainable mining, and cleaner use of coal resources.

🔹 First-Time Introduction: Underground Coal Gasification (UCG)

  • UCG Provision Introduced for the First Time:
    This round introduces provisions for Underground Coal Gasification, allowing coal to be converted into gas in situ (underground) without the need for mining and transportation.
  • Significance:
    • Enables utilisation of deep-seated, unmineable coal seams.
    • Promotes cleaner energy and reduced environmental footprint.
    • Boosts energy diversification and technology-driven coal utilisation.

🔹 Auction Details

CategoryDetails
Total Mines Offered41
Mines with UCG Potential21
Fully Explored Mines20
Partially Explored Mines21
Under CMSP Act, 20155 mines
Under MMDR Act, 195736 mines

🔹 Legislative Framework

  • Coal Mines (Special Provisions) Act, 2015 (CMSP):
    Enables transparent auction and allocation of coal mines post-cancellation of coal blocks by the Supreme Court.
  • Mines and Minerals (Development and Regulation) Act, 1957 (MMDR):
    Governs the regulation and development of mines and minerals across India.

🔹 Objectives

  • Enhance domestic coal production and reduce import dependency.
  • Encourage private sector participation through transparent auctions.
  • Promote technological innovation in the coal sector (like UCG).
  • Contribute to Atmanirbhar Bharat in energy resources.

🔹 Background

  • The commercial coal mining policy was launched in 2020, allowing private players to mine and sell coal without end-use restrictions.
  • Since then, the Ministry has conducted 13 successful auction rounds prior to this one, significantly increasing private sector participation.

🔹 Significance for India

  • Strengthens energy security amid rising power demand.
  • Opens new investment opportunities in coal technology and energy transition.
  • Aligns with India’s goals of sustainable and efficient resource utilisation.

Source: PIB

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